GRP Ltd (GRPLTD) AI Stock Analysis

• Market Cap: ₹9.64B
• Dividend Yield: 0.85%
• Average Volume (3M): 230.00
• Price to Earnings (P/E): 280.4
• Beta (1Y): 1.12
• Revenue Growth: 8.55%
• EPS Growth: 20.47%
• Country: IN
• Employees: 717
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 1.60
• Shares Outstanding: 5,333,332
• 10 Day Avg. Volume: 85
• 30 Day Avg. Volume: 230
• PEG Ratio: 1.37
• Price to Book (P/B): 7.81
• Price to Sales (P/S): 2.72
• P/FCF Ratio: -70.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 24.2
• Revenue Forecast (FY): ₹5.37B

• Rating: 65 Neutral
• Price Target: ₹1,993.00 ▲(13.17% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is primarily supported by strong financial performance (notably revenue growth and improving profitability), but it is tempered by weak free cash flow. Technicals are mixed with short-term strength but a weaker longer-term trend, and valuation is a headwind due to a high P/E and low dividend yield.

Positive Factors

Revenue Growth

Sustained top-line expansion indicates growing customer demand and market share within auto parts. Durable revenue growth provides a base to scale margins, invest in product lines and absorb cyclical shocks, supporting multi-quarter operational planning and reinvestment.

Improving Margins

Rising gross and net margins point to durable cost control and pricing power improvements. Better margins enhance free cash generation potential when sustained, improving the firm's ability to fund capex, delever or invest in growth initiatives over the medium term.

Balance Sheet Resilience

A moderate leverage profile combined with improving ROE suggests efficient capital allocation and an ability to support operations without excessive refinancing risk. This structural balance aids funding flexibility for strategic investments over coming quarters.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow signals that capital expenditures or working capital needs outpace cash from operations. Over several quarters this can limit financial flexibility, constrain dividend capacity and force reliance on debt or equity to fund growth or maintenance capex.

Low EBIT Margin

A relatively low EBIT margin reduces the cushion against cost inflation and demand downturns, limiting internal funding for R&D or capex. Without structural operational improvements, margin pressure can persist and hamper sustainable free cash flow growth.

Reliance on Debt Financing

Moderate dependence on debt increases sensitivity to interest rates and refinancing cycles. If cash generation stalls, servicing debt could crowd out investment or require asset sales, making leverage a structural risk to capital allocation over the medium term.

GRP Ltd Business Overview & Revenue Model

Company Description

GRP Limited manufactures and sells reclaimed rubber products for tire and non-tire rubber goods in India and internationally. The company operates through Reclaim Rubber and Others segments. It offers reclaimed natural and synthetic rubber products for use in inner liners and tubes, tire side walls and piles, tire treads and retreads, conveyor belts, molded goods, adhesives, and footwear, as well as rubber mattings, profiles, and roofing; and POLYCOAT, an elastic powder in compounded form, which is used in NBR based molded products, metal to rubber bonded parts, NBR based oil seals, NBR matting/sheeting, NBR-PVC blend, tires, conveyor belt, molded products, matting/sheeting, tread rubber, seals/gaskets, and flaps applications. The company also provides industrial polymers comprising glass filled and unfilled reprocessed nylon 6 and modified nylon 6,6 used in automotive, electrical and electronics, consumer goods, and industrial applications; and custom die forms consisting of link, door, and industrial mats, as well as dock bumpers primarily for use in civil and agricultural industries. In addition, it generates power from windmill; offers engineering plastics and polymer composite products; and develops poly-blends and thermoplastic elastomers. The company was formerly known as Gujarat Reclaim and Rubber Products Limited and changed its name to GRP Limited in June 2012. GRP Limited was incorporated in 1974 and is headquartered in Mumbai, India.

How the Company Makes Money

GRPLTD generates revenue through multiple streams, primarily from the sale of its industrial components, software solutions, and renewable energy products. The manufacturing division contributes significantly to its earnings by supplying essential components to various industries, including automotive and aerospace. The technology segment offers subscription-based software services, licensing agreements, and tailored solutions for businesses, providing a steady income stream. Additionally, GRPLTD's investments in renewable energy projects, such as solar and wind energy, not only contribute to its revenue through energy sales but also position the company favorably in the growing green energy market. Strategic partnerships with key industry players further enhance GRPLTD's market reach and profitability, allowing for collaborative projects and shared resources that drive innovation and sales.

GRP Ltd Financial Statement Overview

Summary

Income statement strength (78) is driven by strong revenue growth and improving margins, but EBIT margin remains relatively low. Balance sheet is solid (72) with moderate leverage and improving ROE, though debt reliance is a watch item. Cash flow is weaker (65) due to negative free cash flow despite improved operating cash generation.

Income Statement

GRP Ltd has demonstrated strong revenue growth with a significant increase from 2024 to 2025. The gross profit margin has improved, indicating better cost management. The net profit margin also shows positive growth, reflecting effective operational efficiency. However, the EBIT margin is relatively low, suggesting room for improvement in core operational profitability.

Balance Sheet

The company's debt-to-equity ratio is moderate, indicating a balanced approach to leveraging. The return on equity has improved, showcasing effective utilization of shareholder funds. However, the equity ratio suggests a moderate reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Operating cash flow has improved, indicating better cash generation from core activities. However, the free cash flow remains negative, highlighting challenges in covering capital expenditures. The operating cash flow to net income ratio is strong, but the free cash flow to net income ratio is concerning, suggesting potential liquidity issues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.48B	5.50B	4.57B	4.45B	3.83B	2.77B
Gross Profit	3.11B	2.97B	779.49M	1.43B	1.22B	891.47M
EBITDA	666.26M	680.66M	499.10M	342.83M	243.32M	181.93M
Net Income	280.84M	307.01M	226.37M	139.48M	57.60M	16.69M
Balance Sheet
Total Assets	0.00	4.12B	3.42B	2.87B	2.96B	2.48B
Cash, Cash Equivalents and Short-Term Investments	28.02M	29.39M	17.97M	162.93M	154.39M	137.37M
Total Debt	0.00	1.47B	1.13B	891.49M	1.01B	718.95M
Total Liabilities	-1.92B	2.20B	1.76B	1.39B	1.60B	1.16B
Stockholders Equity	1.92B	1.92B	1.67B	1.47B	1.36B	1.32B
Cash Flow
Free Cash Flow	0.00	-213.13M	-302.82M	-50.58M	-225.29M	214.80M
Operating Cash Flow	0.00	445.62M	270.09M	251.30M	15.21M	250.60M
Investing Cash Flow	0.00	-612.54M	-420.93M	-54.52M	-383.42M	8.63M
Financing Cash Flow	0.00	177.63M	146.68M	-193.75M	233.81M	-204.33M

GRP Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1761.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GRPLTD, the sentiment is Positive. The current price of 1761.1 is below the 20-day moving average (MA) of 1782.50, above the 50-day MA of 1749.09, and below the 200-day MA of 2158.10, indicating a neutral trend. The MACD of 3.75 indicates Positive momentum. The RSI at 52.86 is Neutral, neither overbought nor oversold. The STOCH value of 68.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:GRPLTD.

GRP Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNA	72 Outperform	₹18.45B	10.02	―	0.95%	-4.65%	9.95%
IMPAL	70 Outperform	₹12.65B	18.86	―	2.86%	―	―
GRPLTD	65 Neutral	₹9.64B	280.41	―	0.85%	8.55%	20.47%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HITECHGEAR	60 Neutral	₹11.71B	378.45	―	0.74%	-17.86%	-49.46%
INDNIPPON	58 Neutral	₹17.83B	18.47	―	1.57%	22.67%	24.50%
IGARASHI	54 Neutral	₹10.61B	98.19	―	0.57%	0.94%	-32.59%

GRP Ltd Corporate Events

GRP Limited Acquires 26% Stake in Solar Power Supplier BECIS Solar 5

GRP Limited has increased its presence in renewable energy procurement by acquiring a significant minority stake in BECIS Solar 5 Private Limited, a company from which it sources solar power. In the first tranche of the transaction, GRP subscribed to and was allotted 351,351 fully paid-up equity shares in BECIS, representing 26% of its issued and paid-up share capital, signaling a deeper strategic alignment with solar power supply that could support long-term energy cost management and sustainability goals.

GRP Limited Releases Unaudited Financial Results for September 2025

GRP Limited has released an investor presentation detailing its unaudited financial results for the quarter and half-year ending September 30, 2025. This move is part of the company’s compliance with SEBI regulations and aims to maintain transparency with its investors, potentially impacting its market perception and stakeholder confidence.